RentGrow to Pay $2.25 Million to Settle FTC Allegations the Company Violated the Fair Credit Reporting Act and

The U.S. Federal Trade Commission has announced that RentGrow will pay $2.25 million to settle allegations that the company violated the Fair Credit Reporting Act (FCRA) and the FTC Act. The settlement follows an FTC investigation into RentGrow's tenant screening practices, which found that the company failed to use reasonable procedures to ensure the accuracy of its reports and did not disclose sources of data as required by law.

The U.S. Federal Trade Commission has announced a $2.25 million settlement with RentGrow, a provider of consumer reports for tenant screening, over allegations that the company violated the Fair Credit Reporting Act (FCRA) and the FTC Act. The settlement follows an FTC investigation into RentGrow's practices, which found that the company failed to use reasonable procedures to ensure the accuracy of its reports and did not disclose sources of data as required by law.

The FCRA requires consumer reporting agencies like RentGrow to use reasonable procedures to ensure the accuracy of their reports. This includes ensuring that records are accurate and up-to-date, and disclosing sources of data used in the report. The FTC Act also prohibits unfair or deceptive acts or practices in commerce, including those related to consumer reporting.

The settlement with RentGrow highlights the importance of compliance with federal regulations governing consumer reporting agencies. Companies like RentGrow must ensure that they are using reasonable procedures to ensure the accuracy of their reports and disclosing sources of data as required by law. Failure to do so can result in significant financial penalties, as seen in this case.

The settlement with RentGrow serves as a reminder to companies providing consumer reports for tenant screening to prioritize compliance with federal regulations. Practitioners should be aware of the requirements of the FCRA and FTC Act, and ensure that their clients are taking steps to comply with these laws.